KUALA LUMPUR (Dec 4): Malaysian palm oil futures hit a one-week high on Monday, tracking gains in related edible oils on the Chicago Board of Trade and China's Dalian Commodity Exchange.
Concerns floods on the east coast of Peninsular Malaysia could hit production also supported the market, said traders.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 0.7% at 2,621 ringgit (US$642.56) a tonne at the midday break, heading for a second straight session of gains.
Earlier in the session, the contract hit its strongest level since Nov 24 at 2,625 ringgit.
Traded volumes stood at 11,316 lots of 25 tonnes each at noon.
"The market is up on Dalian and soyoil strength," said a futures trader from Kuala Lumpur.
"Although some are feeling jittery about the floods in Kelantan, Terengganu and small parts of Pahang, all bearish news is already factored in," he said, referring to the flood situation in the east coast states of Peninsular Malaysia.
Year-end monsoon rains which lead to floods could hit palm oil production in the short term by disrupting the harvesting process.
Production in Malaysia, the world's second largest producer after Indonesia, could see a monthly decline in November, after industry regulator data showed that output hit the 2 million tonne mark in October, a gain of 12.9% from the previous month.
Palm oil is also impacted by movements in other edible oils, as they compete for a share of the global vegetable oils market.
The January soybean oil contract on the Chicago Board of Trade was up 0.7%, while the January soybean oil contract on the Dalian Commodity Exchange was down 0.1%, after rising as much as 0.6%.
In other related edible oils, Dalian's January palm olein contract rose 0.6%.
Palm oil may break a resistance at 2,612 ringgit per tonne and rise more to the next resistance at 2,645 ringgit, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 0509 GMT
|MY PALM OIL||DEC7||2505||+10.00||2505||2519||11|
|MY PALM OIL||JAN8||2588||+22.00||2571||2589||497|
|MY PALM OIL||FEB8||2621||+18.00||2608||2625||6476|
|CHINA PALM OLEIN||MAY8||5488||+48.00||5436||5508||269016|
|CBOT SOY OIL||JAN8||33.91||+0.00||33.71||33.93||7016|
|INDIA PALM OIL||DEC7||586.60||+2.20||586.00||587||60|
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
(US$1 = 4.0790 ringgit)
(US$1 = 64.4200 Indian rupees)
(US$1 = 6.6133 Chinese yuan)